In the news affecting dairy producers' bottom lines this week:
- Several dairy bills receive support in Congress
- Producer sentiment slips due to rising policy uncertainty
- GDT index bounces back up
- April FSA interest rates lower
- U.S. farmers expect to plant more corn and less soybean acres
- Minnesota Milk to award $12,000 in secondary education scholarships
Several dairy bills receive support in Congress
Members of the 119th Congress are voicing their support for dairy-related initiatives as bills are introduced or discussed during committee hearings. Here are some recent actions:
- The Dairy Nutrition Incentive Program Act of 2025 would provide Supplemental Nutrition Assistance Program, or SNAP, participants with a dollar-for-dollar match for the purchase of milk, cheese, yogurt and cultured dairy products. The bipartisan legislation was introduced in the U.S. Senate by Sens. Amy Klobuchar (D-Minnesota) and Roger Marshall (R-Kansas) and the U.S. House of Representatives by Reps. Jim Costa (D-California) and Nick Langworthy (R-New York). The program would also expand the Healthy Fluid Milk Incentive (HFMI) projects to include whole and reduced-fat (2%) milk as well as additional dairy products including cheese and yogurt.
- The Whole Milk for Healthy Kids Act received testimony from lawmakers, nutrition experts and school officials during the Senate Committee on Agriculture, Nutrition and Forestry hearing held on Tuesday. This bipartisan bill would restore whole and reduced-fat (2%) milk to the more than 30 million students who rely on school breakfast and lunch every day through the federal school meal programs. The hearing marks a critical next step in the legislative process for the Whole Milk for Healthy Kids Act, which was approved by the U.S. House Education and Workforce Committee with a strong, bipartisan vote of 24-10 in February.
- The Safeguarding American Food and Export Trade Yields Act (SAFETY Act) was reintroduced by Sens. John Thune (R-South Dakota), Tammy Baldwin (D-Wisconsin), Marshall and Tina Smith (D-Minnesota) in the Senate and Reps. Dusty Johnson (R-South Dakota), Costa, Michelle Fischbach (R-Minnesota) and Jimmy Panetta (D-California) in the House. The bipartisan legislation would direct the USDA to partner with the U.S. trade representative to prioritize the protection of common names like “Parmesan” and “bologna” in international trade negotiations. Originally introduced in May 2023, the bill represents the first farm bill effort on common names.
- A coalition of more than 100 farmer and cooperative organizations sent a joint letter to House and Senate leaders to urge Congress to permanently extend the expiring provision of Section 199A in the Tax Cuts and Jobs Act of 2017. Also known as the qualified business income deduction, it provides a deduction of up to 20% on qualified business income for certain pass-through entities, including partnerships, S-corporations and sole proprietorships. The Section 199A deduction is one of several tax breaks that will expire at the end of this year without congressional action.
Producer sentiment slips due to rising policy uncertainty
Weaker expectations for the future led to a decline in farmer sentiment in March, according to the latest Purdue University/CME Group Ag Economy Barometer.
“Falloffs in key crop prices since mid-February, combined with concerns about the future of agricultural trade and farm policy, were important factors behind the sentiment shift,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
Producers’ outlook for the future of U.S. agricultural exports reached an all-time low. Trade policy is viewed as the most important policy affecting farms in the next five years. In the event that a trade war leads to lower prices for agricultural products, a large majority of U.S. farmers expect to see a program implemented that would be similar to 2019’s Market Facilitation Program (MFP) to compensate for lower output prices.
The Ag Economy Barometer provides a monthly snapshot of farmer sentiment regarding the state of the agricultural economy. The survey collects responses from 400 producers whose annual market value of production is equal to or exceeds $500,000. Minimum targets by enterprise are as follows: 53% corn/soybeans, 14% wheat, 3% cotton, 19% beef cattle, 5% dairy and 6% hogs. Latest survey results, released April 1, reflect ag producer outlooks as of March 10-14.
GDT index bounces back up
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is up by 1.1% in the auction held April 1. This is after three consecutive lower sales.
Compared to the previous auction, prices for individual product categories were mixed. Skim milk powder posted the biggest gain, up 5.9%. Anhydrous milkfat and cheddar cheese were also up 2.3% and 1.7%, respectively. Buttermilk powder was down 5.6%, and mozzarella was down 4%. Also lower were lactose (2.6%), butter (1.2%) and whole milk powder (0.1%).
The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Inalpi (Italy), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).
The next GDT auction is April 15.
April FSA interest rates lower
The announced interest rates on loans through the USDA’s Farm Service Agency (FSA) are lower after rising briefly in March. As we begin April 2025, interest rates for operating and ownership loans (compared to March) are as follows:
- Farm operating loans (direct): 5.375%, down from 5.5%
- Farm ownership loans (direct): 5.75%, down from 5.875%
- Farm ownership loans (direct, joint financing): 3.75%, down from 3.875%
- Farm ownership loans (down payment): 1.75%, down from 1.875%
- Emergency loan (amount of actual loss): 3.75%, unchanged
The FSA also offers guaranteed loans through commercial lenders at rates set by those lenders. For more information, producers can contact their local USDA Service Center.
U.S. farmers expect to plant more corn and less soybean acres
Producers surveyed across the U.S. intend to plant 95.3 million acres of corn in 2025, up 5% from last year, according to the Prospective Plantings report released earlier this week by the USDA’s National Agricultural Statistics Service (NASS).
Planted acreage intentions for corn are up or unchanged in 40 of the 48 estimating states. Acreage increases of 400,000 acres or more from last year are expected in Iowa, Minnesota, Nebraska and South Dakota. If realized, the planted area of corn in Idaho, Nevada, North Dakota, Oregon and South Dakota will be the largest on record.
Soybean growers intend to plant 83.5 million acres in 2025, down 4% from last year. Acreage decreases from last year of 300,000 or more are expected in Illinois, Iowa, Minnesota, Nebraska, North Dakota and South Dakota. Record-high acreage is expected in New York and Ohio.
The Prospective Plantings report provides the first official, survey-based estimates of U.S. farmers’ 2025 planting intentions. NASS’s acreage estimates are based on surveys conducted during the first two weeks of March from a sample of nearly 74,000 farm operators across the nation.
Other key findings in the report are:
- All wheat-planted area for 2025 is estimated at 45.4 million acres, down 2% from 2024.
- Winter wheat-planted area, at 33.3 million acres, is down 2% from the previous estimate and down less than 1% from last year.
- Area planted to other spring wheat for 2025 is expected to total 10 million acres, down 6% from 2024.
- Durum wheat planted is expected to total 2.02 million acres for 2025, down 2% from last year.
- All cotton-planted area for 2025 is expected to total 9.87 million acres, down 12% compared to last year.
Today, NASS also released the quarterly Grain Stocks report to provide estimates of on-farm and off-farm stocks as of March 1. Key findings in that report include:
- Corn stocks totaled 8.15 billion bushels, down 2% from the same time last year. On-farm corn stocks were down 11% from a year ago, while off-farm stocks were up 12%.
- Soybeans stored totaled 1.91 billion bushels, up 4% from March 1, 2024. On-farm soybean stocks were down 6% from a year ago, while off-farm stocks were up 13%.
- All wheat stored totaled 1.24 billion bushels, up 14% from a year ago. On-farm all wheat stocks were up 13% from last year, while off-farm stocks were up 14%.
- Durum wheat stored totaled 38.7 million bushels, up 6% from March 1, 2024. On-farm durum stocks were up 15% from a year ago, while off-farm stocks of durum wheat were down 3%.
Minnesota Milk to award $12,000 in secondary education scholarships
Minnesota Milk Producers Association is offering six $2,000 scholarships for secondary education to its members.
Applicants must be high school seniors, high school graduates or college undergraduates. They must be enrolled or planning to enroll in a full-time course of study at an accredited four-year college or university or a two-year program at a technical, junior or community college. The study area does not need to be agriculture-related, but applicants must be dependents or employees of a current Minnesota Milk Producers Association member at the time of the award in February 2026.
Minnesota Milk will also award funds up to $1,500 per class to dairy leaders growing their leadership skills within Minnesota Agricultural and Rural Leadership (MARL), for members or employees of member farms who are enrolled in the MARL program.
Full applications and guidelines can be found on the Minnesota Milk website.
Applications must be submitted through the online application portal by May 1.
